Learn About Alternative Investments

Real estate, farmland, and commodities have historically served as inflation hedges. Here's which alternative assets actually protect purchasing power and how to access them.

Most alternative investments are illiquid — you can't exit on demand. Here's what liquidity risk means in practice and how to plan for it before you invest.

Third-party verification services like Verify Investor and EarlyIQ issue letters confirming your accredited status. Here's how they work, what they cost, and when you need one.

Accredited investors can access hedge funds, private equity, pre-IPO companies, and real estate syndications. Here's the complete list of what you can now invest in.

Alternative investments were once reserved for institutions and the ultra-wealthy. Here's how regulation changes, technology, and platforms opened access to retail investors.

Alternative investments can reduce portfolio volatility and improve risk-adjusted returns. Here's a practical framework for adding alts without overcomplicating things.

A self-directed IRA lets you hold alternative assets — real estate, farmland, crypto, private equity — in a tax-advantaged retirement account. Here's how it works.

Fractional investing lets you own a percentage of an asset — real estate, art, farmland, or collectibles — without buying the whole thing. Here's how it works.

506(b) allows general solicitation restrictions but self-certification. 506(c) allows general solicitation but requires verified accredited status. Here's what each means for investors.

For most platforms, non-accredited investors have no cap. For Reg CF offerings, limits apply based on income. Here's a clear breakdown by investment type.

Non-accredited investors can access Fundrise, Groundfloor, Republic, Masterworks, Vinovest, and more. Here's the complete list with minimums and what each offers.

The SEC expanded the accredited investor definition in 2020 to include professional license holders and knowledgeable employees. Here's what changed and who it affects.

LLCs, trusts, and corporations can qualify as accredited investors if all equity owners are accredited or the entity has $5M+ in assets. Here's the breakdown.

The SEC allows spousal equivalents to combine income for the $300K joint income threshold. Here's who qualifies and how to document the relationship for verification.

Employees of private funds who participate in investment activities may qualify as accredited investors under the knowledgeable employee exemption. Here's how it works.

Yes — the SEC's 2020 rule expansion allows holders of Series 65, 66, 7, and other FINRA licenses to qualify as accredited investors. Here's how to document it.

Platforms verify accredited investor status through tax returns, bank statements, or third-party verification letters. Here's exactly what each method requires.

The income path to accredited investor status requires $200K individually or $300K jointly for the past two years with expectation of the same this year. Here's how it works.

To qualify by net worth, you need $1M excluding your primary residence. Here's exactly what counts toward the threshold and what the SEC excludes.

Non-accredited investors can still access real estate crowdfunding, equity crowdfunding, and some art and wine platforms. Here's exactly what's available to you.

Yale's endowment allocates 70%+ to alternative assets including private equity, real estate, and hedge funds. Here's how the institutional approach works and how retail investors can adapt it.

Real assets like farmland, real estate, and commodities have historically outperformed during inflationary periods. Here's which alternatives to consider and why.

Some alternatives like farmland and gold hold up well in recessions. Others like real estate and venture capital can suffer. Here's what the historical data shows.

Alternative investments are often described as uncorrelated to stocks — but the reality is more nuanced. Here's what the correlation data shows for each asset class.

Alternatives can improve retirement portfolio returns but require careful consideration of liquidity and time horizon. Here's what makes sense for retirement accounts.

Carried interest is a performance fee where fund managers take 20% of profits above a hurdle rate. Here's how it works and how it affects your net returns.

A self-directed Roth IRA can hold real estate, farmland, private credit, and crypto — all growing tax-free. Here's how to set one up and what the IRS prohibits.

Tax loss harvesting is harder with illiquid alternatives, but possible in some cases. Here's how to think about it for real estate, private credit, and venture investments.

If your self-directed IRA invests in debt-financed real estate or operating businesses, it may owe UBIT. Here's how UBIT works and how to structure investments to minimize it.

Taxes on alternative investments vary by asset class and holding period. Here's how real estate, private credit, art, farmland, and startup equity are each taxed.

Many alternative investments issue K-1 forms instead of 1099s, which means more complex tax reporting. Here's what K-1s are, what they contain, and how to handle them.

Before investing in any alternative, ask these 20 questions about regulation, fees, liquidity, management, and track record. A practical checklist from ModernAlts.

Management fees, performance fees, origination fees, and platform fees can cut your returns by 2-5% annually. Here's how to calculate your true all-in cost.

From guaranteed returns to hidden fees to no regulatory registration — here are the specific red flags that should make you walk away from any alternative investment platform.

A PPM is the legal disclosure document for private investments. Here's what each section means, what red flags to look for, and which parts actually matter.

Investment platform failures do happen. Here's what SEC regulations say about your money, which assets are protected, and how to assess platform risk before investing.

Alternative investments often charge management fees, performance fees, and platform fees that compound over time. Here's how to calculate your true all-in cost.

Holding alternatives in an IRA can defer or eliminate taxes on gains, but not all platforms accept IRA accounts. Here's how to decide where to hold your alternative investments.

Wine and art are both passion assets with real return potential. They differ significantly on storage costs, liquidity, and market transparency. Here's the comparison.

Alternative investments can reduce correlation and improve risk-adjusted returns. Here's what the research says about adding alts to a traditional stock-bond portfolio.

Not every alternative investment platform is trustworthy. Here are the specific red flags to check before committing any capital — from regulatory status to fee disclosure.

Before investing on any alternative platform, check its regulation, fees, track record, and liquidity terms. Here's the due diligence checklist we use at ModernAlts.

A self-directed IRA lets you hold real estate, farmland, crypto, and private credit in a tax-advantaged account. Here's how to set one up and which platforms accept them.

You become an accredited investor by meeting SEC income or net worth thresholds. Here's the exact criteria, how verification works, and what you gain access to.

Most financial advisors suggest 10-20% in alternatives. Here's how to think about allocation, what asset classes to include, and how to get started.

A self-directed IRA lets you hold real estate, farmland, and private credit in a tax-advantaged account. Here's how it works and what the IRS allows.

Accredited investors get access to higher-minimum private deals. Non-accredited investors still have strong options. Here's exactly what each can access.

Alternative investments include real estate, farmland, art, private credit, and startup equity. Here's how they work, what they return, and how to access them.

An accredited investor meets SEC income or net worth thresholds that unlock access to private investments. Here's what qualifies you and what it unlocks.

Masterworks buys blue-chip artworks and sells fractional shares to investors. Here's exactly how the investment process works from acquisition to exit.

Masterworks is SEC-registered under Reg A+ and has completed 23 exits. Here's an honest look at the platform — including the high fees, liquidity limitations, and what the returns actually show.

Blue-chip art has returned 11.2% annually since 1995, slightly outperforming the S&P 500. But these are aggregate figures — individual artworks vary dramatically. Here's the data.

Blue-chip art has delivered 11.2% annualized returns since 1995 with low correlation to stocks. Here's what the data shows about art as a portfolio asset.

Fractional art platforms advertise strong returns but carry significant risks: high fees, illiquidity, opaque valuations, and a thin secondary market. Here's what to know.

Blue-chip art has returned 11.2% annually since 1995 vs 10.2% for the S&P 500. But art is illiquid, hard to value, and concentrated. Here's the full comparison.

Fractional art investing lets you own shares in blue-chip paintings starting at a few thousand dollars. Here's how the platforms work, the fees, and the risks.

Fractional collectibles platforms let you own shares in rare cars, sports cards, and memorabilia. Here's how they work, what they return, and the real risks.

Gold surged 130% in five years. Real estate returned ~5%. Both hedge inflation differently. Here's how they compare on returns, liquidity, income, and volatility.

You can invest in gold through ETFs, physical bullion, gold IRAs, or digital platforms. Here's how each works, the costs, and which makes sense for your situation.

Farmland investing means owning agricultural land that earns rental income from farmers. Here's how it works, what it returns, and how to access it with less than $50,000.

AcreTrader lets accredited investors buy fractional ownership in U.S. farmland deals. Here's exactly how the investment process works from signup to payout.

AcreTrader is SEC-registered, has FINRA-licensed broker-dealer partnerships, and has completed multiple full-cycle investments. Here's an honest look including the risks.

U.S. farmland has returned 11-12% annually since 1991 with lower volatility than stocks. Here's the historical performance data and what current yields look like.

Farmland has returned 11-12% annually for decades with low volatility. Here's why investors are adding agricultural land to their portfolios and how to access it.

Farmland investing carries risks including weather, commodity prices, illiquidity, and platform failure. Here's what to evaluate before investing in agricultural land.

Farmland and real estate are both real assets but differ in volatility, liquidity, and return profile. Here's a direct comparison to help you decide.

You can invest in U.S. farmland starting at $100 through crowdfunding platforms. Here's how farmland investing works, what it returns, and which platforms to consider.

Litigation finance funds commercial lawsuits in exchange for a portion of the recovery. Here's how the asset class works, who the major players are, and how to access it.

Litigation finance funds lawsuits in exchange for a share of the proceeds. It's uncorrelated to markets, but complex and illiquid. Here's how it works.

Yieldstreet (now Willow Wealth) offers 10+ alternative asset classes. Here's how the platform works, how to pick investments, and what to expect from the experience.

Yieldstreet (now Willow Wealth) is SEC-registered with $6B+ deployed. But it has poor BBB reviews and has had troubled offerings. Here's the honest picture.

Music royalties are ongoing payments earned when songs are streamed, performed, or licensed. Here's how they work as an investment and how to buy royalty streams.

Music royalty investing lets you buy streams of passive income from songs. Platforms like Royalty Exchange and SongVest make it accessible. Here's how it works.

Private credit is now a $1.7 trillion asset class that institutional investors use as a bond replacement. Here's how it works, who the borrowers are, and what retail investors can access.

Private credit carries default risk, illiquidity risk, and platform risk. Here's an honest assessment of what can go wrong — and how to mitigate it.

Private credit offers higher yields than investment-grade bonds but with more complexity and less liquidity. Here's a direct comparison for income-focused investors.

Individual investors can now access private credit through platforms like Percent and Yieldstreet. Here's how private credit investing works, the yields, and the risks.

Private credit is lending to companies outside traditional banks. It's one of the fastest-growing asset classes. Here's how it works and how to access it.

Private equity funds buy and restructure private companies, targeting 15-25% returns over 7-10 year hold periods. Here's how PE works and how individuals can access it.

Top-quartile PE funds have returned 15-27% annually. But average returns are closer to public markets after fees. Here's how to evaluate private equity performance claims.

Private equity was once limited to institutions. Platforms like Moonfare and AngelList now offer access to accredited investors. Here's what to know before investing.

RealtyShares shut down in 2018 after running out of capital. Here's what happened to investors' money, how the wind-down worked, and which platforms you can use instead.

REIT dividends are mostly ordinary income but may qualify for the 20% QBI deduction. Capital gains are taxed separately. Here's the full breakdown of REIT tax treatment.

Depreciation lets real estate investors deduct the cost of a property over 27.5 years, reducing taxable income. Here's how it works and how to use it through crowdfunding.

A REIT is a company that owns income-producing real estate and pays out 90% of taxable income as dividends. Here's how REITs work in plain English.

Fundrise's interval fund structure offers quarterly redemption windows. Here's how it works, what it means for liquidity, and how it compares to other Fundrise products.

Fundrise pools investor capital into private real estate eREITs. Here's exactly how the investment process works — what you're buying, how distributions work, and how to exit.

RealtyShares, PeerStreet, Mainvest, and Linqto all failed or shut down. Here's what happened, what investors lost, and the warning signs you should watch for today.

Fundrise is SEC-registered, has over $7 billion in AUM, and more than 2 million investors. Here's an honest look at the platform — including the real risks and limitations.

Fundrise offers private REIT access with lower fees and higher potential returns but less liquidity than public REITs. Here's a direct comparison to help you decide.

PeerStreet filed for Chapter 11 bankruptcy in 2023. Here's what happened, what it meant for investors with money on the platform, and how the case resolved.

REITs come in many forms: equity, mortgage, hybrid, public, private, and non-traded. Here's what makes each type different and when to consider each.

Real estate crowdfunding became legal in the US after the 2012 JOBS Act. Here's how the industry evolved from Fundrise's first offering to the platforms operating today.

Passive activity losses from real estate can offset passive income but not ordinary income — unless you're a real estate professional. Here's how the rules work.

A waterfall distribution determines the order and amounts in which profits are paid to investors and sponsors. Here's how to read a waterfall structure in a real estate deal.

A preferred return guarantees investors receive a minimum return before the sponsor takes profits. Here's how preferred returns work in real estate syndications.

Opportunity zones offer capital gains tax deferrals for investing in designated low-income areas. Here's how the program works, the tax math, and the investment risks.

A Delaware Statutory Trust lets you complete a 1031 exchange into a fractional ownership of institutional real estate. Here's how it works and whether it makes sense.

Real estate offers depreciation, 1031 exchanges, opportunity zone benefits, and passive loss deductions. Here's how each works and how to take advantage of them.

Real estate crowdfunding is regulated but not risk-free. Here's an honest assessment of what can go wrong, which platforms are the most trustworthy, and how to protect yourself.

Direct ownership means full control and tax benefits but requires capital, credit, and management time. Crowdfunding is passive with lower minimums. Here's the full comparison.

Real estate platforms offer both debt and equity investments. Debt is senior and safer but lower-return. Equity offers upside but more risk. Here's how to think about it.

Public REITs trade on exchanges and offer liquidity. Private REITs are illiquid but may offer higher returns and lower volatility. Here's how they compare.

Active real estate means owning and managing properties. Passive means investing through platforms or REITs. Here's how to choose based on your time, capital, and goals.

A 1031 exchange lets real estate investors defer capital gains taxes by reinvesting proceeds into a like-kind property. Here's exactly how it works and the key deadlines.

Opportunity zones offer capital gains tax deferrals for investing in designated communities. Here's how the tax benefits work, the risks, and whether they're worth it.

Real estate syndications pool accredited investor capital into large commercial properties. Here's how the structures work, what to expect, and how to find deals.

REITs are available through brokerages, private platforms, and crowdfunding apps. Here's how to invest in each type, what they cost, and what to expect.

REITs let you invest in real estate without buying property. Here's how they work, the different types, what they return, and how to add them to your portfolio.

Real estate crowdfunding lets you invest in properties with as little as $10 by pooling money with other investors. Here's how it works and what to expect.

CrowdStreet lost $63M in investor funds in the 2023 Nightingale Properties fraud. Here's what happened, what it means for current investors, and what changed.

Real estate crowdfunding carries real risks including illiquidity, platform failure, and deal-level losses. Here's what to know before investing.

Real estate crowdfunding and REITs both offer real estate exposure but work very differently. Here's a direct comparison on liquidity, fees, returns, and risk.

You can invest in real estate starting with $10 through crowdfunding platforms. Here's how it works, what to expect, and which platforms to consider.

Venture capital funds early-stage startups in exchange for equity. Here's how VC works, what returns look like, and how retail investors can now access venture capital.

Pre-IPO investments can return 10x or go to zero. They're illiquid, hard to value, and may never have a liquidity event. Here's what to know before investing.

Equity crowdfunding lets retail investors back startups through Reg CF platforms. Venture capital is for institutional investors. Here's how they compare.

Regulation A+ allows companies to raise up to $75M from non-accredited investors with lighter disclosure requirements than a full IPO. Here's how it works.

Reg CF is the SEC framework that allows non-accredited investors to invest in startups through equity crowdfunding. Here's how the rules work and what you can invest in.

Non-accredited investors can invest up to $2,500 or 5-10% of annual income in Reg CF offerings annually, depending on their income. Here's how the limits work.

VC returns are power-law distributed — a few winners carry the portfolio. Here's what top VC funds have returned historically and what retail investors should realistically expect.

90% of startups fail. Equity crowdfunding investments are illiquid with no guaranteed exit. Here's an honest look at the risks before you invest in any startup.

Reg CF and Reg A+ are both SEC frameworks for equity crowdfunding but differ in investment limits, disclosure requirements, and who can invest. Here's the breakdown.

Pre-IPO investing lets accredited investors buy shares in private companies before they go public. Here's how it works, where to access deals, and what to watch out for.

Retail investors can now invest in startups through Reg CF platforms starting at $100. Here's how equity crowdfunding works, the risks, and how to pick deals.

Fine wine has returned 10-13% annually over the past two decades according to the Liv-ex index. Here's what the data shows — and the caveats investors need to know.

Wine investing involves storage costs, provenance risk, illiquidity, and platform counterparty risk. Here's the full risk picture before you invest in fine wine.

Wine has historically returned 10-13% annually. Platforms like Vinovest let you invest in managed wine portfolios starting at $1,000. Here's how it works.